.jpg SHOWN: Over on the left, L to R: Peter Stosich and Adam Kennedy relax in the bar area of Mr., where Adam has just gotten his hair cut. An upscale barbershop called Mr. is owned by Kumi Walker and Sean Heywood, who see the business as more a hospitality business. There is haircutting, a bar, a lounge area, etc. These pictures were made on Monday, April. 2, 2007, in San Francisco, CA.
(Katy Raddatz/The Chronicle)
**Kumi Walker, Sean Heywood, Adam Kennedy, John Gartland Mandatory credit for the photographer and the San Francisco Chronicle. No sales; mags out.

Photo: Katy Raddatz

.jpg SHOWN: Over on the left, L to R: Peter Stosich and Adam...

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.jpg SHOWN: Nick Calvanese, known to his large and loyal clients as "Nicky the Barber" finishes a haircut for Adam Kennedy. Adam will then join friends downstairs in the bar. An upscale barbershop called Mr. is owned by Kumi Walker and Sean Heywood, who see the business as more a hospitality business. There is haircutting, a bar, a lounge area, etc. These pictures were made on Monday, April. 2, 2007, in San Francisco, CA.
(Katy Raddatz/The Chronicle)
**Kumi Walker, Sean Heywood, Nick Calvanese Mandatory credit for the photographer and the San Francisco Chronicle. No sales; mags out.

Photo: Katy Raddatz

.jpg SHOWN: Nick Calvanese, known to his large and loyal clients as...

Image 3 of 3

BARBER_031_RAD.jpg SHOWN: L to R: Kumi Walker, Sean Heywood, upstairs at Mr., which they own and operate. An upscale barbershop called Mr. is owned by Kumi Walker and Sean Heywood, who see the business as more a hospitality business. There is haircutting, a bar, a lounge area, etc. These pictures were made on Monday, April. 2, 2007, in San Francisco, CA.
(Katy Raddatz/The Chronicle)
**Kumi Walker, Sean Heywood Mandatory credit for the photographer and the San Francisco Chronicle. No sales; mags out.

Beth Schnitzer was sipping champagne by the bar and glancing at a baseball game on the big high-definition TV. John Gart-land was relaxing with a pint of beer on a black leather sofa. Kumi Walker was moving furniture around to prepare for a March Madness party later that evening.

"The haircut's great, the atmosphere's great, the conversation's great, and the people hanging out here are great," said Kennedy, who joined his friend Gartland for a beer when the haircut was done.

Bar? Barbershop?

Or both?

MR. -- which opened last month in San Francisco's Financial District -- is an unusual startup that combines upscale men's barbering with a bar and lounge.

Conceived by two 28-year-old Stanford business school grads, MR. is not your corner clip joint. Instead of individual haircuts, it sells monthly memberships for men, like a health club. It's open until 10 p.m. for drinking and socializing by both men and women. The bar's glass countertop displays pricey men's accessories such as wallets and flasks for sale to patrons.

Co-owners Kumi Walker and Sean Heywood envision the Sacramento Street shop as the first in a chain that will spread to cities such as Los Angeles, Las Vegas, New York and Chicago.

And they benchmark themselves not against other hair salons but against giant hospitality brands such as Four Seasons hotels or Starbucks.

"If this were just about one barbershop, it would be a loss for both of us," Walker said.

"We didn't go to Stanford to own a barbershop," agreed Heywood. "We went to Stanford to learn about creating a brand."

Walker and Heywood aren't the first entrepreneurs to try an upscale, branded approach to men's grooming. The Art of Shaving opened in 1996 and today has 20 retail stores -- including one in Westfield San Francisco Centre -- that each year sell more than $25 million of expensive shaving paraphernalia such as $250 razor-and-brush sets.

American Male is a national chain of 16 salons, including one in Mountain View, that offer "hand detailing" instead of manicures and "body finishing" instead of waxing.

But no one has yet created the kind of large market for expensive men's haircuts that Starbucks did for expensive cups of coffee.

MR. differs from other upscale men's salons in several ways. One is its founders' backgrounds.

Rather than coming out of the beauty industry, Walker and Heywood worked at high-powered financial firms such as Morgan Stanley and Goldman Sachs and the consulting firm McKinsey & Co. after meeting as undergraduates at Brown University.

The two friends realized they wanted more autonomy than they could expect in corporate America. They came up with the idea of opening a barbershop -- but a barbershop reinvented for the 21st century. Then they went to business school to prepare themselves.

"Whether you are Republican or Democrat, East Coast or West Coast, white, black or Latino, every individual gets their hair cut," Heywood said. "We realized that it's something most men are pretty underwhelmed with. The barbershop is the only thing not consistent with the aesthetic characteristics we expect from the rest of our lives."

Walker and Heywood envisioned something more fashionable than Supercuts but not as female-focused as the typical hair salon.

They also wanted to replicate the role that barbershops played as a social hub in the African American communities where they grew up.

But they wanted their shop to be inclusive and welcoming to all ethnic groups. So their barbers are cross-trained to handle all kinds of hair.

"Historically, this is a very segregated business, with African American barbershops serving a 100 percent African American clientele, Asian barbershops serving an Asian clientele, and so on," Heywood said.

"It's tough being two African Americans pitching anything in the grooming space," Walker said. "People's initial reaction is, 'This must be an African American barbershop.' But we see ourselves like the Four Seasons -- not defined by race, but as a hospitality business."

One challenge facing upscale men's salons such as MR. is generating enough income, since men typically spend much less on grooming than women do.

"One of the reasons this market has been tough is that men are less willing to pay $50 for a haircut," said Jim Ellis, a Stanford business lecturer who taught Walker and Heywood. "If you're used to going to the local barber for $13, how do you justify spending $50? They've got to make this an 'experience.'"

MR.'s use of memberships rather than service fees may help with this. Memberships start at $65 per month for a haircut and a follow-up trim -- giving patrons an incentive to come in regularly and providing Walker and Haywood with a steady income stream.

The bar and lounge will also be key to turning a profit.

"The bar component is an interesting idea," said Scott Pettett, an Oakland hairstylist who considered opening a men's salon with a colleague several years ago but concluded it wouldn't pencil out. "All those extras -- the bar, the retail -- are a big addition."

So far, MR.'s bar and lounge seem to have taken off more quickly than its barbering services.

MR. held a private pre-opening party in February for members of Yelp, the online review site, which generated a lot of positive word of mouth.

Its sleek interior of exposed brick walls, wooden beams, black leather seats and free Wi-Fi has also attracted downtown professionals seeking an offbeat new spot for parties or business networking.

"Every time I go in there, I've met people who are useful to me at work," said Lars Leckie, an associate at Hummer Winblad Venture Partners and a business school classmate of the owners. "Every time I go, I end up spending a couple of hours. I get a haircut, I watch TV, I talk to people."

In keeping with Walker and Heywood's philosophy of inclusion, many of the most enthusiastic lounge patrons are women -- even though they can't get a single strand of hair trimmed there.

"I love it because it's a unique venue," said Pier 39 executive Beth Schnitzer, who had been sipping champagne at MR.'s bar while waiting to host a March Madness party there. "It's fun, upscale, intimate. I'd love to get my hair cut here if they had female barbers."